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Tenure, Earnings and Productivity

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  • de Oliviera, M Mendes
  • Cohn, Elchanan
  • Kiker, B F

Abstract

Employing data for the United States taken from the 1983 wave of the Panel Study of Income Dynamics, an attempt is made to estimate tenure-earnings and tenure-productivity profiles. The underlying methodological approach is to assume that earnings of self-employed workers are identical to the value of their marginal product. Relying on a two-stage regression approach and taking selectivity bias into account, the authors find that estimated tenure-earnings and tenure-productivity profiles are found to intersect twice, after six and eighteen years of tenure, respectively. They provide an explanation for the results and also calculate the present values of the two profiles. Copyright 1989 by Blackwell Publishing Ltd

Suggested Citation

  • de Oliviera, M Mendes & Cohn, Elchanan & Kiker, B F, 1989. "Tenure, Earnings and Productivity," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(1), pages 1-14, February.
    • Handle: RePEc:bla:obuest:v:51:y:1989:i:1:p:1-14
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    Cited by:

    1. Barth, Erling, 1997. "Firm-Specific Seniority and Wages," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 495-506, July.
    2. Jinyoung Kim & Kanghyock Koh, 2023. "Jack of fewer trades: Evolution of specialization in research," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 423-452, May.
    3. Kuhn, Johan Moritz, 2007. "My Pay is Too Bad (I Quit). Your Pay is Too Good (You're Fired)," Working Papers 07-5, University of Aarhus, Aarhus School of Business, Department of Economics.
    4. Beckmann, Michael & Schauenberg, Bernd, 2007. "Age-biased technological and organizational change: firm-level evidence and management implications," Working papers 2007/05, Faculty of Business and Economics - University of Basel.
    5. Schneider, Lutz, 2011. "Zum Einfluss von Alter und Erfahrung auf Produktivitäts- und Lohnprofile - Befunde einer Linked-Employer-Employee-Analyse," VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48728, Verein für Socialpolitik / German Economic Association.
    6. Shy, Oz & Stenbacka, Rune, 2018. "Dynamic labor market competition and wage seniority," International Journal of Industrial Organization, Elsevier, vol. 61(C), pages 130-154.

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